A new look at SECURE Act 2.0 issues
The SECURE Act 2.0 has a new provision that speaks to the nature of auto-enrollment for new 401(k) plans. All eligible hires will be required to enroll at a pretax rate of 3% at the minimum. Furthermore, the mandatory enrollment will come with an auto-escalation of 1% annually, but this is only effective until the […]
What does retirement have to do with college?
Parents, read this carefully. According to a survey of 4,500 couples by Allianz, 39% of respondents stated that saving for their kids’ education was their primary motivation for a long-term financial plan. Among single parents, 45% shared that outlook. And in a LendingTree survey of 1,000 parents with children under 18, 68% revealed they would […]
Is now the time to make the switch to a Roth IRA?
Present and future income tax rates should be considered when deciding to convert your traditional IRA to a Roth IRA.
What qualifies as a ‘coronavirus-related distribution’ from a retirement plan?
The Coronavirus Aid, Relief and Economic Security (CARES) Act allows “qualified” people to take certain “coronavirus-related distributions” from their retirement plans without paying tax. The first question that needs to be asked is, what is a coronavirus-related distribution? Early distribution basics In general, if you withdraw money from an IRA or eligible retirement plan before […]
A nonworking spouse can still have an IRA
It’s often difficult for married couples to save as much as they need for retirement when one spouse doesn’t work outside the home — perhaps so that spouse can take care of children or elderly parents. In general, an IRA contribution is allowed only if a taxpayer has compensation. However, an exception involves a “spousal” […]
CARES Act changes retirement plan and charitable contribution rules
As we all try to keep ourselves, our loved ones, and our communities safe from the coronavirus (COVID-19) pandemic, you may be wondering about some of the recent tax changes that were part of a tax law passed on March 27. The Coronavirus Aid, Relief, and Economic Security (CARES) Act contains a variety of relief, […]
April 1 deadline for RMD from retirement accounts
It’s nearing that time again for the deadline to take required minimum distributions from retirement accounts. April 1, 2020, is the deadline for those who turned 70 ½ in 2019 to take their required minimum distribution from their IRA and workplace retirement plans. The Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE […]
IRA charitable donations are an alternative to taxable required distributions
Are you charitably minded and have a significant amount of money in an IRA? If you’re age 70½ or older, and don’t need the money from required minimum distributions, you may benefit by giving these amounts to charity. IRA distribution basics A popular way to transfer IRA assets to charity is through a tax provision […]
Roth or traditional IRA? Income level and taxes could help you decide
It’s never too early to begin planning for retirement or investing in a nest egg for the future. There are several options available for investing in retirement plans, but the two we get questions about most often are whether a traditional or a Roth IRA is the best option. Deciding which is the best vehicle […]
Are your employees ignoring their 401(k)s?
For many businesses, offering employees a 401(k) plan is no longer an option — it’s a competitive necessity. But employees often grow so accustomed to having a 401(k) that they don’t pay much attention to it. It’s in your best interest as a business owner to buck this trend. Keeping your employees engaged with their […]